Phono Company manufactures a plastic toy cell phone. The following standards have been established for the...

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Phono Company manufactures a plastic toy cell phone. The following standards have been established for the toy's materials and labor inputs: Direct materials Direct labor Standard Quantity Standard Price (rate in $) Standard Cost 0.5 lb. $ 1.50 $0.75 0.15 hr. 10.00 1.50 During the first week of July, the company had the following results: Units produced Actual labor costs 90,000 $138,000 Actual labor hours Materials purchased and used 13,400 44,250 lbs. @$1.55 per lb I The purchasing agent located a new source of slightly higher-quality plastic, and this material was used during the first week in July. Also, a new manufacturing layout was implemented on a trial basis. The new layout required a slightly higher level of skilled labor. The higher-quality material has not effect on labor utilization. Similarly, the new manufacturing approach has no effect on material usage. (Note: Round all variances to the nearest dollar.) Required: 1. Conceptual Connection: Compute the materials price and usage variances. Materials price variance Phono Company manufactures a plastic toy cell phone. The following standards have been established for the toy's materials and labor inputs: Direct materials Direct labor Standard Quantity Standard Price (rate in $) Standard Cost 0.5 lb. $ 1.50 $0.75 0.15 hr. 10.00 1.50 During the first week of July, the company had the following results: Units produced Actual labor costs 90,000 $138,000 Actual labor hours Materials purchased and used 13,400 44,250 lbs. @$1.55 per lb I The purchasing agent located a new source of slightly higher-quality plastic, and this material was used during the first week in July. Also, a new manufacturing layout was implemented on a trial basis. The new layout required a slightly higher level of skilled labor. The higher-quality material has not effect on labor utilization. Similarly, the new manufacturing approach has no effect on material usage. (Note: Round all variances to the nearest dollar.) Required: 1. Conceptual Connection: Compute the materials price and usage variances. Materials price variance